Filing Sales Tax

[kemasa]

Here is another example. At the tax rate of 8.125% and selling items at $1, the sales tax for each item is $0.08, so you put that money away for each sale. You sell 10000 items, so you have collected $800.00.

So if you divide $800 by .08125, you come up with gross sales in the amount of $9846.20, but your actual gross sales is $10000. The amount owed for $10000 of gross sales is $812.50, rounded in the return to $813, but it means that you are not paying the correct amount of sales tax which is due if you just pay the $800. The state wants their $13 and goes after you for unpaid sales tax, sales tax evasion, interest and penalties. Then you get to pay an attorney as well.

[oogaloo]

I get it. It's unfair. I'm dizzy.

[kemasa]

One way to look at is with each purchase there is rounding, but there is only two rounding with the tax return.

[kemasa]

So do you get it now?

[halifax]

Back off Ken. You aren't Mr. Know-It-All. Your ego really deserves a break and so do we.

I'm going to continue doing it my way despite your superior intellect and not loose any sleep over rounding non-issues.

[kemasa]

Back off Ken. You aren't Mr. Know-It-All. You're ego really deserves a break and so do we.

I'm going to continue doing it my way despite your superior intellect and not loose any sleep over rounding non-issues.

Wow. It has nothing to do about ego. I pointed out what the problem is. You can choose to claim an incorrect gross sales amount, that is your choice, but you should not tell others to do it because it is not correct.

It seems that you got bent out of shape because you were shown as being wrong. Sorry about that and the harm to your ego.